Alphabet stock jumps as Google reportedly builds AI chip to boost Gemini efficiency

Alphabet shares rose about 3% on Monday after a report said Google is developing a new AI server chip called “Frozen v2” to make its Gemini AI models run more efficiently. The new chip is being built specially for Gemini AI. It is designed to improve speed and reduce the amount of computing power needed to answer user questions.

Frozen v2 would permanently build parts of Gemini’s AI architecture directly into the chip. This means the chip can perform many tasks without repeatedly running the same calculations.